If an Economy Begins to Use Its Resources Less Efficiently

question 141

Multiple Choice

If an economy begins to use its resources less efficiently, it will move

• A) to a point closer to its ppf.
• B) to a point farther away from its ppf.
• C) from a point along its ppf to a point outside its ppf.
• D) from one point to another point along its ppf.

---

Definitions:

Initial Investment

The funds allocated to start a business or a project, representing the beginning financial input.

Net Present Value

The calculation of the present value of the sum of the present values of all cash inflows and outflows expected from an investment, using a specific discount rate to value future cash flows.

Cost Savings

Reductions in expenses that contribute to increased profit margins.

Required Rate of Return

The minimum annual percentage earned that an investment must generate to avoid loss to the investor.